Statement 1 is correct. Kautilya's Arthashastra describes various ways a person could become a slave (dasa), including as a result of judicial punishment (e.g., for certain crimes), voluntary self- sale, or being captured in war. Statement 2 is correct. Arthashastra (Book III, Chapter XIII) explicitly states that if a female slave bore her master a son, both the mother and the child would gain emancipation (legally become free). Statement 3 is incorrect. While the son born to a female slave and fathered by her master gained freedom along with his mother, he was not automatically entitled to the full legal status of a son born to the master's free wife. Kautilya's text deals with different types of sons and inheritance rules, and a son by a slave woman had a distinct status, though he was not a slave.